Trump Softens Stance on China, Now It's Xi Jinping's Turn for Revenge

US President Donald Trump has opened the doors wide for China to purchase Nvidia’s H200 AI chips, the second most advanced model produced by the US company currently available on the market. However, the Xi Jinping administration is still playing hard to get. US Commerce Secretary Howard Lutnick stated that Chinese companies are facing difficulties in obtaining approvals from their government to buy the H200 AI chips. For context, the Trump administration formally greenlit the sale of H200 chips to China in January 2026. This has sparked controversy among Washington politicians who fear that Beijing will use the advanced US technology to bolster its military. According to sources, shipments of the chips are being held up by disputes over sales conditions, both in China and the US, as cited from Reuters on Thursday (23/4/2026). “The Chinese central government has not yet permitted the purchase of [advanced US] chips, because they want to focus investments on the domestic industry,” Lutnick said when asked about H200 sales to China during a Senate hearing. “We haven’t sold any [H200] chips yet,” he added. Nvidia did not immediately respond to requests for comment. The ongoing delay in chip sales will be welcomed by anti-China hardliners in the US, who reject the Trump administration’s argument that the sales hinder China’s competitors from catching up with US AI chip producers. Lutnick highlighted the complexity of US-China relations and the balancing acts required. He also appeared to backtrack on promises to reinstate rules that would restrict US technology exports to thousands of Chinese companies. Those rules were delayed for a month since November 2025 as part of trade negotiations with China. “I agree that those rules are a smart thing for the US to consider, but they are part of the full trade agreement balance,” Lutnick said. Lutnick also downplayed his role in broader China issues, stating that the US’s “very complex” trade relationship with China is directly led by Trump and a team including Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. “I’m focused on the whole world,” he said.